Could Solar Powered

Reefer Boxes provide a

solution for Developing
Countries?

C. Maheshwar
Training Superintendent
Fleet Management Training Institute
Mumbai, INDIA
I HAVE A DREAM -

WHEN A PERSON DESIRES WITH ALL

HIS HEART, THE ENTIRE UNIVERSE
CONSPIRES TO HELP HIM REALISE THE
DREAM
Paulo Coelho
The Alchemist
 Could Solar Powered
Reefer Boxes provide a
solution for Developing
Countries?

C. Maheshwar
Training Superintendent
Fleet Management Training Institute
Mumbai, INDIA
 The Roadmap
This presentation covers the following topics:
Introduction
The Problem
The Solutions
Technical Feasibility
Financial Viability
Social Impact
 INTRODUCTION
„ By the end of ninth five year plan, India
had emerged as the second largest
producer of fruits and vegetables in the
world.
„ With an annual output of 46 million
tonnes of fruits and 91 million tonnes of
vegetables of a total worth of US$ 25
billion India is contributing nearly 10%
and 13% respectively to the world’s
production.
„ By the end of tenth five year plan,
production is expected to increase to 56
million tonnes of fruits and 108 million
tonnes of vegetables.
 Pre Harvest
vs
Post Harvest
„ The shift in the cropping patterns, particularly in the
irrigated and irrigated-dry farming systems is largely
responsible for keeping pace with the changing
consumption patterns with increasing disposable
incomes in the last decade.
„ Enough attention is paid in the Pre-Harvest stages
starting with the genetically modified seed
technology and production techniques like crop
rotation, soil conservation, pest control, fertilizers,
irrigation etc.
„ But, Post Harvest issues have been grossly neglected
or addressed inadequately.
 The Problem

„ About 30% (40 million tonnes worth US$ 13

billion) of the totally grown farm produce gets
wasted due to gaps in the Cold Chain and does
not reach the end consumers.
 Reasons for Wastage

The wastage is attributed to gaps in Cold Chain due to:

„ poor infrastructure
„ insufficient cold storage capacity
„ unavailability of cold storages in close proximity to farms
„ poor transportation infrastructure
„ lack of quality consciousness and awareness
This results in instability in prices, farmers not getting
remunerative prices, rural impoverishment resulting in
farmers’ frustrations and suicides.
 What India consumes Everyday!
„ WHEAT: 1,97,260 tonnes equal to 82 train loads of
40 wagons each
„ RICE: 2,19,178 tonnes equal to 100 train loads of 40
wagons each
„ SUGAR: 52,054 tonnes equal to 3,500 truck loads
„ COOKING OIL: 30,136 tonnes equal to 3,000
tanker loads
„ FRUIT: 86,671 tonnes equal to 9,000 truck loads
„ VEGETABLES: 1,94,520 tonnes equal to14,000
truck loads
 What India consumes Everyday!
„ MILK: 2,46,757 tonnes equal to 89 Olympic size
Swimming Pools
„ CHICKEN: 13,39,726 birds equal to population of
a small-sized town
„ COFFEE: 219 tonne equal to 15 truck loads
„ POTATOES: 68,000 tonnes equal to 4,000 truck
loads
„ ONIONS: 1,64,383 tonnes equal to 8,000 truck
loads
 The Logistics Exercise
„ Imagine the logistics exercise of mammoth
proportions involved in everyday transportation of the
food products from the places where they are grown
to the distant locations to feed the population at every
nook and corner of the country.
„ With perishable products, this exercise became all the
more formidable and challenging.
„ No wonder, in a developing country like India with
the cold chain infrastructure hardly in place, there are
such enormous losses of perishable products.
Problems faced by Horticulture Sector
in India
A. Lack of infrastructure for value addition through
proper storage and processing
B. Perishable commodities deteriorate fast without
special infrastructure like refrigeration and deep
freezing facilities right from their production.
C. Lack of a comprehensive Quality System which
would take responsibility of ensuring maintenance of
the quality throughout the export supply chain.
 Export Performance
„ Horticulture is among those sectors where most
Indian products are globally cost competitive, India
being among the world’s largest producers of fruits
and vegetables.
„ But the quantum of exports of horticultural produce
is rather dismal for its potential (less than 1%)
compared to 70% of USA and Brazil, 78% of
Philippines and 83% of Malaysia as percentages of
total horticultural produce.
 The Paradox of Horticultural Exports
„ One argument frequently offered to explain this
paradox is that the quality of Indian fruits and
vegetables is usually not up to world standards.
„ Measures are already afoot to address the quality
issues.
„ Of late, Indian horticulture scientists have now turned
quality conscious and have re-worked their research
and breeding priorities to meet the needs of the
exporters, who have evolved strategies to meet the
phytosanitary requirements of the quality conscious
importers from abroad.
 Quality Issues
„ However, the quality issues need to be addressed
more seriously and awareness has to be increased.
„ There is a need to maintain the quality of the product
as it passes through the export supply chain right
from the time it is harvested till it reaches the end
consumer.
„ The need of the day is something similar to the 360
Quality and Zero Damage Code Concepts for Reefer
Cargoes which is adopted by Specialised Reefer
Shipping Association in Europe.
 Onset of Deterioration
„ Defects and deterioration in quality start occurring
in fruits and vegetables due to temperature
differences right from the time of harvest.
„ The loss of quality increases with delay in onset of
cooling .
„ This is in particular valid for Indian conditions with
high ambient temperatures, where cold storages are
located at considerable distances from the fields.
 Indian Cold Storages
„ Operating costs for Indian Cold Storage Units
reach $2 plus per cubic foot per year compared
to less than $1 in the West!
„ Energy Expenses make up about 28%of the
total expenses for Indian Cold Storages
compared to 10% in the West.
„ These factors make setting up of cold storages
difficult, unviable and uneconomical.
 The Solutions
A. An integrated cold chain infrastructure covering
major production areas, processing units and
distribution centers consisting of:
„ Strong fleet of refrigerated transport vehicles to connect
the farm level storage facilities, processing units and
various distribution centers.
„ Need to augment cold storage facilities and container
handling facilities at major ports as also an air cargo
complex for targeting the global market.
B. A New Model for Marketing Perishables in which
small and marginal farmers reap the benefits of the
ongoing retail boom.
C. A Comprehensive and Holistic Quality System
encompassing all stakeholders involved in the
perishable product export chain.
 Right from the grower’s point
„ A grower who can meet the challenges of preserving the
quality from field to dinner table will be able to expand his
marketing opportunities and will be able to compete better
in the market place. If a product does not hold up in the
distribution chain, often the grower is blamed for poor
handling practices.
„ Refrigeration of the product at the grower’s end is highly
recommended as the grower has no control over its handling
and storage after it is sold and leaves his hands. It buys the
growers that extra shelf life time that the wholesaler and
retailer might reduce with poor handling procedures.
„ This can be achieved by the use of Refrigerated Containers.
 A seamless gap-free cold chain
„ This can be achieved using Refrigerated
Containers to transport harvested products
from farms to cold storages.
„ Refrigerated Containers are to be used to
supplement the existing conventional cold
storages
„ Optimum usage of the containers can yield an
annual savings of about US$ 4.5 billion.
„ The investment is US$ 0.5 billion and the
payback period is just 3 months.
 Specifications Of A Standard 20 Feet
Refrigerated Container
„ External Dimensions: 20x8x8.5 Ft.
„ Internal Dimensions: 18x7.5x7 Ft.
„ Internal Volume: 1000 Cu. Ft.
„ Payload Capacity: 21350 Kgs
„ Gross Weight: 24000 Kgs
„ Temperature : -25 To +35 Deg C
„ Power Consumption: 5 KWh
 Refrigerated Containers
„ The refrigerated containers used presently for marine
applications are designed to transport parcels of
homogeneous cargo across oceans from one part of
the world to another.
„ For applications over land in Indian terrain, to suit
Indian environmental and climatic conditions, with
the presently available power and road infrastructure
in India, they need to be adapted suitably with
necessary modifications.
 Only a link in the Cold chain

„ Reefer Containers and Trucks are only a link in the

Cold Chain.
„ They would preserve the perishable products from
deterioration and damage from the farm to the cold
storage and during transportation from one place to
another.
„ They are not to be used as a substitute for Cold
Storages.
„ Cold Storages are an indispensable component of the
Cold Chain without which the Chain would crumble.
 Economics
„ Total Annual Losses in Fruits and Vegetables: 40 million MT
of Value: US$ 13 bn (30% of total production)
„ Payload per Reefer Container: 21 MT
„ No. Of Containers Required to transport the total produce: 8
million
„ No. Of Containers required if each Container makes one trip a
day: 21,000
„ Cost of a 20 ft. Container with Solar PV panel:
$ 15,000+$ 37,400=$ 52,400
„ Cost of 21000 Containers: $ 1.1 bn
„ Reduction in Post Harvest Losses achieved per year: $ 4.5 bn
(35% of Total Losses).
„ Payback Period: 0.25 years or 3 months
 Investment Required for Solar PV
Power
„ 5,500 US$ per KW for a 23 KW grid connected
solar PV system
„ 7,500 US$ per KW for a stand alone smaller
system
„ 37,500 for 5KW for a Reefer Container of 5
KW capacity
 Why Solar Power?
„ Depleting Fossil Fuels
„ Growing
Environmental
Concerns
„ Erratic and Unreliable
Grid Power
Availability of Solar Energy
Europe
 Typical Insolation Values
„ Insolation: Measure of Available Solar Power in
KWh/mtr2/day
„ Typical Insolation Values in Europe and US:
4KWh/m2/day in the North Europe to 6.5
KWh/m2/day in sunniest regions of US
„ Sahara Desert: 8.3 KWh/m2/day
 India – A Solar Nation
„ The solar energy
available averages
(Insolation) 5.0 kwh/sq.
m/day
„ India has abundant solar
resources, receiving
about 3000 hours of
sunshine every year,
Solar Energy Potential in India

•Has a potential of about 20 MW per sq km

Power Consumption of Reefer
Container Machinery
 Power available from Solar Panels on
Reefer Container Boxes
„ Average Power requirement for a 20ft Reefer Container
Machinery: 5 KW
„ Rooftop area available: 20 x 6 = 120 sq. ft.
„ Side Area available:2 X 20 X 8 = 320 sq. ft.
„ Total Area available: 440 sq. ft.
„ Area of a typical 150W solar PV panel: 1 sq. mtr.= 10.76
sq. ft.
„ Power available from solar panels on top and sides: 6.2
KW which is sufficient to run the refrigeration
machinery
 Another View of Power Available
„ Considering only the rooftop panel with an overhang
of 2 ft on all sides: area available: 24 X 10 = 240 sq.
ft.
„ Power available for such a panel: 3.5 KW which is
sufficient to run a smaller unit.
„ This is considering an efficiency of 15%.
„ Commercial models of upto 20% efficiency area also
available.
„ Research is on to further improve the efficiency as it
is simply matter of concentrating the solar energy
and soon we may be able to dispense with the solar
panels on the sides of the containers.
 Economics of Solar Powered
Reefer Container Boxes
„ Cost Of 1 Kwh Using DG Set At Current Bunker
Prices: 15 Ct
„ Cost Of Running Reefer Container Per Hour @5kwh:
75 Ct
„ Cost Of Running Reefer Container Per Day (12 Hrs.):
$9.00
„ Cost Of Running Reefer Container Per Year (365
Days): $3,295
„ Cost of D G Set: US$ 7,000
 Economics of Solar Powered Reefer
Container Boxes
„ Cost of Solar Panels: US$ 37,500
„ Cost Of Running Reefer Container Using Solar
Power: Nil
„ Payback Period Of Solar Power Vs. DG Set: 37,500-
7,000/3,295= 9.25 Years (excluding depreciation and
maintenance costs of DG Set and assuming constant
fuel prices)
„ Other long term environmental and social gains.
Note: Bunker prices are always fluctuating and move
upwards, with downward movement of payback
period.
 Decreasing Cost of P V Energy

„ SUNRGI has recently released details about its new patent-

pending solar system that could make it possible to produce
electricity at a wholesale cost of US $0.05 per kilowatt-hour
(kWh), according to the company. Xtreme Concentrated
Photovoltaics (XCPV) can concentrate the equivalent of more
than 1,600 times the sun's energy onto solar cells.
 The Opportunity!
„ Refrigerated Containers: upto 21,000 to start
with
„ Solar PV Panels: upto 9.2 million square feet
 The Tangible Benefits
„ To Customers: Better Quality produce
guaranteeing additional returns.
„ To Farmers: Better returns for their efforts in the
form of additional revenue due to extended life of
the product, reduction in loss of moisture content,
fewer incidences of pilferage, reduced spoilage and
wastage.
„ To End Consumers: Availability of fresh and
better nutritional product, more choice of
foodstuffs, better health standards.
„ To Government: More revenue in the form of
taxes for goods sold, greater export potential
especially in view of stricter standards recently
imposed, encouragement to intellectual and
technological awareness among citizens.
 The Intangible (Social) Gains
„ India has a major chunk of its population (about
69%) depending on agriculture and allied activities
for their livelihood.
„ Any Reduction achieved in Post Harvest Losses
would directly contribute to their health and
prosperity, measured by the actual reduction in rural
impoverishment, and farmers’ suicide rate.
„ It would also directly contribute to the better health of
the entire population due to preservation of natural
nutritional value of the food products. A life saved is
a life gained.
 The Intangible Social Concerns
„ Last year, the farmers of Vidarbha region in the state
of Maharashtra received a relief package from Central
and State Governments to the tune of Rs. 5000 crores
(US$1.1 billion) to mitigate the hardships of the
farmers resulting and the stem the ever increasing
suicide rates.
„ Even this relief package has not shown visible results.
„ By investing half the above amount in refrigerated
containers on a national scale and placing them at
strategic locations across the country, the long term
outcomes would be much visible and the results
would be much more far reaching.
 Post Harvest Management - A
Panacea!
„ This is just an overview of the entire issue of usage
of Reefer Containers and Reefer Trucks for
preservation of perishable products during
transportation from one place to another and also
from farm to the cold storage.
„ It is important to adopt correct handling practices
throughout a product’s post harvest life i.e., from the
field to the consumer. Horticulture is a very
competitive and risky business, it emphasizes the
importance of control at various stages of the product
movement viz. Grading, Packaging, Pre-cooling,
Storage and Transportation so that correct product
quality is maintained.
 Limitations
„ Post Harvest Management is not to be treated as an
individual activity. It is a community activity
involving growers, shippers, importers, carriers,
government authorities, equipment suppliers and
others.
„ Only commitment, communication and free flow of
information between all stakeholders would make it a
successful venture. In the present era, with the
growing importance of retail revolution, it is all the
more important for us to seek newer technologies and
innovate so that perishable products reach the end
consumer in an impeccable condition.
„ Reefer Trucks and Reefer Containers would satisfy
this requirement to a considerable extent
 This is not
THE END
This is a NEW BEGINING!
 Acknowledgements
„ Carrier Transicold
„ Thermoking
„ European Communities
„ The Energy and Resources Institute (TERI)
„ www.RenewableEnergyWorld.com
„ Matthias Loster
„ Food and Agriculture Organisation
THANK YOU